Question
Consider a Zerobond (i.e., a bond that pays no coupon payment, meaning that the coupon rate on the bond is 0%) with a par value
Consider a Zerobond (i.e., a bond that pays no coupon payment, meaning that the coupon rate on the bond is 0%) with a par value of $1,000 that will mature exactly 15years from today. The current YTM of this Zerobond is 4.28%. Two years ago the YTM of the same Zerobond was 3.9%. Calculate the dollar price increase/decrease (2 decimal places) within the last two years.If the bond falls in price, enter your answer on D2Las a negative value (i.e., put a minus sign before your number with no space between the minus sign and the number). If the bond increases in price, record the dollar amount of the increase.
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